KakaoBank announced on the 9th that it has signed a business agreement with the Seoul Metropolitan Government and the Seoul Credit Guarantee Foundation (Seoul Shinbo) to support financial aid for small business owners in the Seoul area.
Through this agreement, KakaoBank will make a special contribution of 2 billion KRW to Seoul Shinbo. Using these funds, Seoul Shinbo will provide 25 billion KRW in guarantee support to launch the "Seoul Quick Dream Interest Support Loan" product. This agreement was signed as a joint agreement involving all three internet-only banks.
The "Seoul Quick Dream Interest Support Loan" product can be applied for starting from the 9th via the KakaoBank app and Seoul Foundation branches. Eligible applicants are individual business owners located in Seoul with a credit score of 839 or below (based on NICE) and who have at least six months of business experience. The loan limit is up to 30 million KRW.
This agreement also includes a pact on the "interest subsidy project," where local governments partially cover the interest for each small business owner. Those who subscribe to the "Seoul Quick Dream Interest Support Loan" product can receive an interest subsidy benefit of up to 1.8 percentage points for four years.
KakaoBank has signed interest subsidy agreements with a total of 10 regional credit guarantee foundations, including the Seoul area. Since April, KakaoBank became the first internet-only bank to launch a non-face-to-face interest subsidy product, offering guarantee loan products with interest support benefits ranging from 1.5% to 4 percentage points in 10 regions including Gwangju, Busan, Incheon, Gyeongbuk, Daejeon, Jeonnam, Sejong, Chungbuk, Chungnam, and Seoul, providing an average interest rate benefit of about 2 percentage points per customer.
KakaoBank and the Seoul Metropolitan Government will fully support the guarantee fees until the end of this year. The maximum guarantee fee of 1.28 million KRW incurred when executing guarantee loans will be equally borne by KakaoBank and the Seoul Metropolitan Government, effectively reducing the financial burden on small business customers. Since launching the guarantee loan in May last year, KakaoBank has borne guarantee fees exceeding 7 billion KRW over the past year.
A KakaoBank representative stated, "We will continue to provide various financial supports for individual business owners based on innovative financial technology, contributing to strengthening self-sustainability and revitalizing the local economy."
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